Feld Thoughts

JULY 28, 2014

Each of the SBIC funds were raised in the 2000 – 2002 time period. The SBIC was instrumental in the creation of the venture capital business. The booming IPO market proved the model of investing in new companies, as some SBICs cash out at attractive levels. “Then when you dig into it, there were some problems.”

SBIC 142

SBIC Venture Capital Colorado SBA 142

Up and Running

AUGUST 18, 2014

Startups tend to rely on capital that comes via angel investors or venture capital firms while small business operations may rely on loans and grants. The interesting thing about venture capital is that those providing it tend to have a more active role in whatever company they are backing.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Both Sides of the Table

JUNE 22, 2011

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. Why does all this matter?

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. side note: our last fund at GRP Partners is currently ranked as the 5th best performing fund of the year 2000.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

AUGUST 12, 2010

Retail investors were burned in IPOs in 2000, Consumers getting burned by services disappearing) Minutes 31-35. Tags: This Week in Venture Capital. Too many people have been burned in past and if angels get burned that will kill a lot of needed early investors. Angel investors need to be smart and not just follow-along.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Steve Blank

JULY 15, 2010

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. It was early 2000. The former is much more likely than the latter. The risk wouldn’t be appropriate. That was market.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. Super Angels sometimes drive up valuations.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Steve Blank

MARCH 18, 2011

Dot.com Bubble ( 1995-2000): “ Anything goes” as public markets clamor for ideas, vague promises of future growth, and IPOs happen absent regard for history or profitability. August 1995 – March 2000: The Dot.Com Bubble. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit.

Internet 334

Internet IPO Silicon Valley Agile 334

Pascal's View

SEPTEMBER 7, 2009

Unfortunately, Mr. Slywotzky makes an important assertion about venture capital that is incorrect. But from 2000 to the end of 2007, the rate plunged to 900,000 a year. business model that drives job growth in emerging growth companies is IPOs. business model that drives job growth in emerging growth companies is IPOs.

IPO 38

IPO Venture Capital America Marketing 38

Pascal's View

AUGUST 12, 2009

In Silicon Valley, Boston, Austin, and other innovation centers across the country, entrepreneurs and their backers (who are not limited to venture capitalists) are all keenly aware that Washington’s addiction to enacting hasty, one-size-fits–all financial regulation will continue to have far-reaching unintended negative consequences for the U.S.

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

Version One Ventures

JULY 22, 2014

More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. We have all heard about the Series A crunch in the Valley (there might actually be up to 2000 companies in the Series A pipeline right now), and perhaps there’s a Series B crunch now too.

Finance 167

Finance Seed Money Bootstrapping Angel Investor 167

Genuine VC

MARCH 26, 2012

Over the past decade, VCs have been lamenting about the poor state of the IPO markets and that the number of real potential acquirers for consumer internet startups has dwindled down to a handful, if that. That optimism, even, can extend beyond the IPO markets to M&A as well.

Acquisition 128

Acquisition Internet IPO Venture Capital 128

Genuine VC

MARCH 26, 2012

Over the past decade, VCs have been lamenting about the poor state of the IPO markets and that the number of real potential acquirers for consumer internet startups has dwindled down to a handful, if that. That optimism, even, can extend beyond the IPO markets to M&A as well.

Acquisition 100

Acquisition Internet IPO Venture Capital 100

500hats.com

AUGUST 2, 2012

TL:DR : This post aims to recap significant changes in the venture capital industry over the past ten years, and then make some [biased] predictions as to major forces at play in the next five years. However, all three shifts are related and can be summed up simply as: Geeks are Taking Over Venture Capital.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Gust

OCTOBER 17, 2012

In addition, angels were up against a selection problem: All the best entrepreneurs and opportunities would naturally gravitate to the best venture capital funds, leaving only the “scraps” for angel investors. This is absolutely competitive with venture capital returns. So which is it? Only they’re not.

Angel Investor 152

Angel Investor Venture Capital Seed Stage Silicon Valley 152

The Equity Kicker

AUGUST 24, 2012

This comes on top of a lot of other negative news, including leading investors selling shares in the companies above at minimal profits, and CalPERS, traditionally one of the largest investors in venture capital, announcing that they have made a terrible 0.0 per cent return on venture over the last ten years.

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

Steve Blank

JUNE 17, 2011

Ben offers that as Apple, Google and Amazon survived the dot.com crash, we can ignore the fate of the thousands of failed public and private dot.com companies when the bubble burst in March of 2000. The issue is whether the next 100+ tech IPO’s carried by this bubble will be worth their offering price in 8 years.

Investment Bankers 310

Investment Bankers Stock Valuation Venture Capital 310

David Teten

APRIL 1, 2011

I hope that you can join us Monday night, April 4, midtown NYC, at a panel on “Innovation in Private Company Liquidity-Online Merger Markets, Social Media, Secondary Markets, Non-US Markets, Private Equity, and the Disappearing IPO” The program is sponsored by the HBS Club of New York and the HBS Angels of NY.

Private Equity 68

Private Equity Merger IPO Equity 68

Startup Professionals Musings

DECEMBER 26, 2013

Initial Public Offerings (IPO) are back as an exit strategy. That is a 65% increase in the number of IPOs over 2012, and the highest proceeds raised since the year 2000. Twitter was one of the most notable, with a market capitalization now up to $38 billion all by itself. It’s not too late to start. Marty Zwilling.

IPO 273

IPO Entrepreneur Social Media Startup 273

Growthink Blog

APRIL 2, 2014

Well, if you don’t, try on these IPO, M&A, and financing stats from 1st Quarter 2014: Initial Public Offerings: 72 companies went public in the U.S. in the 1st quarter - the largest number of new issuers since 2000 -raising a total of 11.1 And, as of Monday 54 of the 72 of them were trading above their IPO price.

Private Equity 69

Private Equity Merger IPO Initial Public Offering 69

Reid Hoffman

MARCH 19, 2019

And from a financial perspective, any investor would be better off buying stock in Amazon than buying and share of a corner bookshop; if you invested $100 in Amazon’s 1997 initial public offering (IPO), those shares would have been worth about $120,000 in 2018. Blitzscaling is a strategic technique for moving faster, not a reckless gamble.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

techcrunch.com

OCTOBER 13, 2012

In addition, angels were up against a selection problem: All the best entrepreneurs and opportunities would naturally gravitate to the best venture capital funds, leaving only the “scraps” for angel investors. This is absolutely competitive with venture capital returns. So which is it? Only they’re not.

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

abovethecrowd.com

JULY 10, 2014

android ecommerce Internet iphone IPO marketplaces Mobile Payment Regulation Twitter Uber Uncategorized Venture Capital Web/Tech Analysis Errors Sharing Economy TAM UberX' The consultant’s prediction, 900,000 subscribers, was less than 1% of the actual figure, 109 Million.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

abovethecrowd.com

AUGUST 23, 2020

But in light of where we are in 2020, especially with regard to the degrading efficiency and sky-rocketing cost of capital through the structurally broken IPO process, SPACs may emerge as a legitimate third option for helping Silicon Valley companies efficiently and cost-effectively transition into the public markets.

IPO 118

IPO Silicon Valley Warrant Matching 118

ReadWriteStart

APRIL 26, 2012

In an interview with ReadWriteWeb, Davidson explains how the latest industry to receive the disruption treatment has been the venture capital business itself, with the epicenter of the quake right around San Francisco. There used to be the Four Horsemen of the IPO world, back in the '80s and '90s. The question is why?

IPO 115

IPO Stock San Francisco Lean 115

Startup Professionals Musings

JULY 19, 2015

Initial Public Offerings (IPO) are back as an exit strategy. Last year was the most active year for IPOs in the United States since 2000. 275 IPOs were completed in 2014, topping the 2013 total of 222 by more than 23%. Thus a record number of entrepreneurs (and employees) are getting rich.

IPO 120

IPO Angel Investor Startup Incubator 120

Both Sides of the Table

SEPTEMBER 13, 2009

I’m not going to cover in this post the obvious post-show marketing tasks such as following up on all those business cards you grabbed, communicating with all those people who registered at your site and leveraging your new found fame to score venture capital. There was talk of an IPO in 12 months. Don’t drink it.

South Africa 310

South Africa Europe Disintermediation Poland 310

The Equity Kicker

APRIL 22, 2016

I first noticed it in late 2000 when the fund I was working for was invested in one of six high profile and highly funded enterprise portal businesses. I think one of the companies made it to IPO but even they struggled when IBM and other large tech players bought their competitors.

Burn Rate 60

Burn Rate IPO Valuation Mobile 60

This is going to be BIG.

MARCH 30, 2015

Because most internet business concepts were not capable of productively employing tens of millions of dollars of venture capital does not mean they were bad ideas." With growth rates reduced, IPOs would be even tougher to come by--but companies would survive. They''ll be around 10 years from now. But at what valuation?

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Austin Startup

MARCH 7, 2021

in the last four years we’ve seen a 250% increase in venture capital funding and have doubled the number of startup development organizations in our community.” It is the tech hub of Texas and has the most local venture capital and attracts the most venture capital. billion invested across the state.

Texas 90

Texas San Antonio Houston Dallas 90

Pascal's View

AUGUST 21, 2011

question in venture capital. This time, the debate centers on the “favored few” Social Media venture backed companies that have brought tremendous windfalls to a select group of venture funds and management teams, both pre- and post-IPO. Welcome to the latest passionate debate over the ‘valuation bubble or not?’

Valuation 50

Valuation Social Media Media IPO 50

Feld Thoughts

FEBRUARY 28, 2023

IPO issues: Possibly the biggest problem for German venture-backed companies is the very low number of IPOs in Germany. The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone. The lack of conversion rights must also be considered when structuring voting rights.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Ben's Blog

MARCH 24, 2011

Let’s look at public market comparables and venture capital flows to see if we can find a match. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. Venture capital flows. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

online.wsj.com

SEPTEMBER 23, 2012

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail. NAME David Cowan.

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107

Agile VC

JULY 11, 2012

I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms. But we strive and aspire to build a firm that will excel and be around for awhile.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Seeing Both Sides

APRIL 10, 2011

In May 1996, Open Market completed a successful IPO and more than doubled on the first day of trading, ending with a $1.2 billion market capitalization. The Internet bull market continued to run for four more years after the Open Market IPO, finally ending in the spring of 2000. This IPO and others like it (e.g.,

IPO 48

IPO IRR Brazil Government 48